World Perspectives

Minority Supplier; Trade “Agreements”

Minority Supplier Following negotiations with his Chinese counterparts over the weekend, U.S. Treasury Secretary Scott Bessent said he expects China to revive substantial purchases of U.S. soybeans and to delay expanding its licensing requirement for rare earths. The Treasury lead claims to understand the angst of farmers because he also owns farmland. While markets rose in response to the news, the absolute rebound may be limited. Soybean prices have been declining for three years, and while China’s refusal to buy U.S. beans has been disappointing, other nations have increased their buying due to the Yankee price discount. The real issue has been Brazil’s ascent as a producer and supplier. Its share of soybean production over t...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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